Real Estate and Lending Activities (Tables)

6 Months Ended

Jun. 30, 2018

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Assets Acquired

We acquired the following assets (in thousands)

	For the Six Months Ended June 30,
	2018			2017
Assets Acquired
Land and land improvements	$	16,121		$	87,620
Building		232,409			399,867
Intangible lease assets — subject to amortization (weighted average useful    life 20.0 years for 2018 and 28.5 years for 2017)		25,198			73,722
Net investments in direct financing leases		—			40,450
Liabilities assumed		—			(878	)
Total assets acquired	$	273,728		$	600,781
Loans repaid(1)		(259,378	)		—
Total net assets acquired	$	14,350		$	600,781

(1) Includes $259.4 million of loans advanced to Steward Health Care System LLC (“Steward”) in 2017 and repaid in 2018 as described more fully below.

Summary of Status Update on Current Development Projects

See table below for a status update on our current development projects (in thousands):

Property	Commitment		Costs Incurred as of June 30, 2018		Estimated Completion Date
Circle Health (Birmingham, England)	$	44,825	$	20,942	1Q 2019
Circle Health Rehabilitation (Birmingham, England)		22,269		3,360	3Q 2019
Surgery Partners (Idaho Falls, Idaho)		113,468		23,318	1Q 2020
	$	180,562	$	47,620

Summary of Facilities Subject to Joint Venture Designated as Held for Sale

At June 30, 2018, the 71 facilities subject to the joint venture were designated as held for sale and included the following net assets (in thousands):

Real estate held for sale	$	1,263,257
Straight-line rent receivables		36,246
	$	1,299,503

Summary of Operations for Disposed Assets in 2018

The properties sold during 2018and the assets held for sale (from the Joint Venture Transaction) at June 30, 2018, do not meet the definition of discontinued operations.  However, the following represents the operating results (excluding gain on sale and any non-cash charges such as straight-line rent write-offs) from these properties (excluding the St. Joseph sale which was converted to a mortgage loan) for the periods presented (in thousands):

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2018			2017			2018			2017
Revenues	$	34,142		$	28,817		$	69,900		$	55,536
Real estate depreciation and amortization		(6,129	)		(7,070	)		(14,902	)		(13,595	)
Property-related expenses		(14	)		(1	)		(255	)		(1	)
Other income (expense)		(410	)		(5,501	)		(969	)		(7,045	)
Income from real estate dispositions, net	$	27,589		$	16,245		$	53,774		$	34,895

Components of Net Investment in Direct Financing Leases

The components of our net investment in DFLs consisted of the following (in thousands):

	As of June 30, 2018			As of December 31, 2017
Minimum lease payments receivable	$	2,207,355		$	2,294,081
Estimated residual values		434,769			448,339
Less: Unearned income		(1,953,697	)		(2,043,693	)
Net investment in direct financing leases	$	688,427		$	698,727

Summary of Loans

The following is a summary of our loans (in thousands):

	As of June 30, 2018		As of December 31, 2017
Mortgage loans	$	1,686,866	$	1,778,316
Acquisition loans		118,290		118,448
Working capital and other loans		29,565		31,761
	$	1,834,721	$	1,928,525

Schedule of Revenue by Operator

Revenue by Operator

	For the Six Months Ended June 30,
	2018					2017
Operators	Total Revenue		Percentage of Total Revenue			Total Revenue		Percentage of Total Revenue
Steward (1)	$	147,868		36.3	%	$	72,518		22.4	%
Prime		63,590		15.6	%		63,059		19.5	%
MEDIAN		57,289		14.1	%		47,744		14.8	%
Ernest		34,542		8.5	%		35,269		10.9	%
RCCH		20,414		5.0	%		19,632		6.1	%
Other operators		83,245		20.5	%		84,982		26.3	%
Total	$	406,948		100.0	%	$	323,204		100.0	%

(1) Includes revenue from IASIS prior to being acquired by Steward on September 29, 2017.

Schedule of Revenue from External Customers by Geographic Areas

Revenue by U.S. State and Country

	For the Six Months Ended June 30,
	2018					2017
U.S. States and Other Countries	Total Revenue		Percentage of Total Revenue			Total Revenue		Percentage of Total Revenue
Texas	$	60,361		14.8	%	$	49,851		15.4	%
Massachusetts		54,433		13.4	%		53,159		16.5	%
Utah		41,734		10.3	%		5,057		1.6	%
California		29,422		7.2	%		33,123		10.3	%
Arizona		23,286		5.7	%		15,542		4.8	%
All other states		121,307		29.8	%		109,875		33.9	%
Total U.S.	$	330,543		81.2	%	$	266,607		82.5	%
Germany	$	74,176		18.2	%	$	54,576		16.9	%
United Kingdom, Italy, and Spain		2,229		0.6	%		2,021		0.6	%
Total International	$	76,405		18.8	%	$	56,597		17.5	%
Grand Total	$	406,948		100.0	%	$	323,204		100.0	%